Coalition Formation Algorithm of Prosumers in a Smart Grid Environment

TL;DR

This paper introduces a novel coalition formation algorithm for prosumers in smart grids, optimizing energy stability and diversity through graph-based methods to improve grid reliability and social welfare.

Contribution

The paper presents a new graph-based algorithm for forming energy coalitions that satisfy stability and diversity constraints, enhancing grid robustness and efficiency.

Findings

Algorithm outperforms random procedures in social welfare.

Coalitions formed are more robust to weather-induced production variations.

The method ensures minimum energy levels and uncorrelated energy sources.

Abstract

In a smart grid environment, we study coalition formation of prosumers that aim at entering the energy market. It is paramount for the grid operation that the energy producers are able to sustain the grid demand in terms of stability and minimum production requirement. We design an algorithm that seeks to form coalitions that will meet both of these requirements: a minimum energy level for the coalitions and a steady production level which leads to finding uncorrelated sources of energy to form a coalition. We propose an algorithm that uses graph tools such as correlation graphs or clique percolation to form coalitions that meet such complex constraints. We validate the algorithm against a random procedure and show that, it not only performs better in term of social welfare for the power grid, but also that it is more robust against unforeseen production variations due to changing weather conditions for instance.